Closing on Your Home

Ok, you've found your dream home and you've applied for a mortgage; now comes time to close on the house.

Closing is the completion of the real estate sale and mortgage loan transaction. Many parties may attend the closing besides you including (but not limited to): the seller, a representative for the lender, attorneys (yours and the seller's), and a representative from the title company.

Closing Documents

At the closing, you'll have to review and sign several documents which will complete the entire process. These include the HUD-1 settlement statement which lists all the closing costs and fees you'll need to pay in connection with your loan; the mortgage note which says you promise to repay your loan; the mortgage or deed of trust which provides a detailed legal description of the property you're buying and confirms that you are pledging the property as collateral for repaying the loan; the Truth-in-Lending statement which states your annual percentage rate (APR); and the monthly payment letter which shows a breakdown of your monthly mortgage payment—it may also contain payment coupons.

Closing Fees

You will have to pay closing costs which are settlement fees that may include: the appraisal , credit report , processing fees, attorney fees, underwriting fees , and purchase points . Closing costs will vary by geographic location, so make sure you ask your mortgage banker what costs you'll have to pay so that you don't run into any problems on the day of closing. Learn more about closing costs.

It's possible for the lender to roll your closing costs into the loan which will make your loan and monthly payment a bit larger, but depending on your circumstances, it may or may not be something you need to do.

Few loans come without closing costs and some lenders may charge less closing costs, but charge you a higher interest rate to make up the difference. Talk to your mortgage banker so that you're absolutely clear on all the terms of your loan contract and you know exactly what fees you'll be paying.

It's possible you'll still have questions about the mortgage process. If so, talk to your mortgage banker or contact us. Quicken Loans home loan experts will answer any questions you have and are more than happy to walk you through the entire mortgage process.